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Pradhan Mantri MUDRA Yojana

Collateral-free loans up to ₹20 lakh for non-farm micro and small enterprises through the Shishu, Kishore, Tarun and Tarun Plus categories.

Ministry of FinanceUpdated 22 May 2025
Pradhan Mantri MUDRA Yojana

Overview

The Pradhan Mantri MUDRA Yojana provides institutional finance to non-corporate, non-farm micro and small enterprises.

Loans are offered without collateral through banks, NBFCs and micro-finance institutions.

The scheme is structured into categories — Shishu, Kishore, Tarun and Tarun Plus — based on the loan amount and stage of the business.

Eligibility Criteria

  • Any Indian citizen with a viable business plan for a non-farm income-generating activity.
  • Applicable to manufacturing, trading, services and allied agricultural activities.
  • Applicant should not be a defaulter to any bank or financial institution.

Key Benefits

  • Collateral-free loans up to ₹20 lakh.
  • Shishu (up to ₹50,000), Kishore (₹50,000–₹5 lakh), Tarun (₹5–10 lakh) and Tarun Plus (₹10–20 lakh) categories.
  • Flexible repayment and a MUDRA card for working-capital needs.

Required Documents

Identity and address proof (Aadhaar, PAN, Voter ID)
Business plan and quotations for machinery/assets
Proof of business existence, if applicable
Bank statements and passport-size photographs

How to Apply

  1. 1Prepare a simple business plan and estimate your loan requirement.
  2. 2Approach any bank, NBFC or MFI, or apply through the Jan Samarth / Udyamimitra portal.
  3. 3Submit the application form with KYC and business documents.
  4. 4After appraisal, the loan is sanctioned and disbursed to your business account.

Important Dates

Scheme launchedApril 2015
Tarun Plus limit enhanced2024

Apply on the Official Website

Always apply and verify details on the official government portal.

Frequently Asked Questions

Common questions about PMMY.

No. MUDRA loans are collateral-free, so you do not need to pledge property or a third-party guarantee for eligible amounts.

Under the Tarun Plus category, eligible borrowers with a good repayment record can access loans up to ₹20 lakh.

small businesscollateral-free loanself-employment
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